The concept of property flipping may sound to be enticing, but investors must keep in mind that it’s not as easy as it looks. In fact, a lot of research and planning goes into a successful and profitable flip, and it’s only with experience that one learns the true market secrets!house flipping for profit

Jumping into the bandwagon of buying and selling property without thinking may result in major losses down the road, and it is because of this that almost 90% first time flippers never give it a shot after their first attempt.

However, the good news here is that a little attention to details, planning and market trends can save you from a lot of hassle in the future and also make way for some heavy cash inflows!

Want to know what makes a flip shine and what mistakes can you make during the whole process? Go through the following tips and tricks to seal the flipping deal on a high note! Take a look:

The Hidden Costs behind Market Rates

The main point to keep in mind when you are considering property flipping is to ‘buy low and sell high’. However, buying low does not mean that you buy lesser than what the properly was worth a few years ago – instead, it refers to the current market value of other similar properties in that location.

Similarly, buying at market value and then selling it with a little profit is also not a very feasible option, as there are multiple costs associated with both buying and selling a particular property. Thus, if you buy at market value you are most likely to make the final sale at a loss.

Finding low priced property in the market is also a difficult feat on its own, as there is currently a lot of competition in the market because of the low inventory. Stay in touch with real estate investment companies or attend property auctions regularly to get your hands on an attractive deal before anybody else. Distressed properties and foreclosure home are also viable options in this aspect.

Renovate but Don’t Spend Too Much

Buying distressed property and recouping its value by adding amenities or repairs is long since considered a secret to making profits. Though some general maintenance is always needed when you purchase a home, overspending on the repairs will only add up to your costs and make it difficult to gain sufficient profits through the flip.

Don’t Overlook the Transaction Fees

First time investors do not know that there are a bunch of additional fees and charges associated with buying and selling a house and these should be accounted for before you purchase a property. These will include the property and land taxes, transfer fees, closing costs, HOA fee, insurance etc.

It is always a good idea to take help from a professional and do some calculations in advance to assess how much a  property flip will cost you and how much can you gain through it.

Timing is not the Only Key

Last but certainly not the least, property flipping demands not only your time and attention but also sufficient cash in hand. The longer you keep the property in your hands, the more will be the costs and expenses associated with it. Also, the house will lose its valuation the longer it stays in the market!

Therefore, if you are willing to make it big in the real estate market as an investor, you will have to look at all the facts and buy and sell your property at the right time! Regard property flipping as a skill and not just a business – you will need to learn it and polish your mettle before you can go on to make it a source of income for you!